In 2016, HR technology funding reached record levels with 402 deals worth approximately $2.2B, more than 5 times the funding in 2012. This innovation in the market place has created a new wave of adoption and digitization by HR organizations.

1. January 2018
Digitization of Human Resources
© 2018 Michael S. Kenny & Company LLC. All Rights Reserved.

2. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Thought Provoking – Did You Know That…
1. Employees at Apple, Google & Dell are 40% more productive than the average company.1
These companies have 15% “star” players while the average company has 16%.
They are doing more with the same level talent!
2
2. The gap between technology, capability, and productivity is growing.
Business productivity since 1947 has grown at an average rate of only 1.9% over the past 70 years, while
computing performance has increased 1 trillion fold.2 It’s HR’s job is to close the gap!
3. Consumer Experience is now the Employee Experience. Employees are customers.
Gallup has found that a staggering 87% of employees worldwide are not engaged, but companies with
highly engaged workforces outperform their peers by 147% in earnings per share3.
4. Tenure for U.S. wage and salary workers has remained stable at 5 years over the past 10 years.4
The average tenure for Top 10 tech companies attracting the best talent is only 1.76 years!5

3. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Thought Provoking – Did You Know That…
3
5. Analog HR is dead…
§ Mobility: By 2020 mobile workers will account for nearly three-quarters (72.3%) of the U.S. workforce.6
§ Contingent Workforce/Gig Economy: Contingent workers (freelancers, contractors, consultants, temps) increased
56% since 2006 and now make up almost half of the American workforce in 2017.7
§ Millennials: More than 1 in 3 American workers are Millennials (ages 18-34) as of 2015, surpassing GenX
workers for the first time.8 The new workforce expects a more engaging and collaborative work experience.
§ Cloud: Cloud technology spending is growing at 4.5 times the rate of IT spending since 2009 and is expected to
grow further at 6 times the rate increasing from $67B in 2015 to $162B in 2020, attaining a 19% CAGR.9
§ Cost: Digital cloud based HCM solutions reduce TCO by 25% - 50% compared to status quo.10
1. Making Star Teams out of Star Players, Harvard Business Review, Michael Mankins, Alan Bird, James Root, Jan - Feb 2013.
2. Thank You for Being Late, Thomas Freidman, 2016.
3. Design Your Employee Experience as Thoughtfully as You Design Your Customer Experience, Harvard Business Review,
Denise Lee Yohn, December 08, 2016
4. Economic News Release, Bureau of Labor and Statistics, September 22, 2016
5. Business Insider, Becky Peterson, Aug. 20, 2017
6. U.S. Mobile Worker Population Forecast, 2016–2020, IDC, Brian Basset, August 2016
7. Hiring Best Practices: Traditional Workers vs. Contingent Workers, OnboardIQ, January 25, 2017
8. Millennials surpass Gen Xers as the largest generation in U.S. labor force, Pew Research, Richard Fry, May 11, 2015
9. The Salesforce Economy, IDC, John F. Gantz, Pam Miller, September 2016
10. Accenture, Deloitte, Workday, SuccessFactors, case studies & analysis, 2017

4. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Innovation Driving Digitalization
In 2016, HR technology funding reached record levels with 402 deals worth approximately $2.2B, more than 5 times the funding in 2012. This
innovation in the market place has created a new wave of adoption and digitization by HR organizations.
4
Source: “Upward Mobility: HR Tech Hits A New Record”, CB Insights, March 24, 2017

5. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
What is the Digitization of HR?
5
The evolution of on-premise ERP systems to support core HR administrative functions to the current and future generation of cloud based and
mobile HR technologies that is enabling the transformation of HR to more strategic business operations partner.
Next Generation HR Technology Platform
Enabling the Digitization of HR
• Human Capital Management
• Talent Acquisition
• Performance Management
• Calibration & Compensation Planning
• Employee Engagement
• Learning Management
• Contingent Workforce Management
• Team Collaboration
2000 2017
Traditional HR Capabilities:
Extensions of ERP Systems
• Recruiting & Hiring
• Employee Record Management
• Payroll
• Time Tracking
• Compensation Management
• Benefits Administration
• Retirement programs
• Training

6. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Next Gen HR Technology
Next generation technology solutions has driven the digital transformation of Human Resource organizations, bringing intuitive
business applications with new functionality to increase productivity, standardization, automation, and scalability.
The impact of this digitization has been profound, elevating Human Resources from a back office support function to a
strategic People Operations organization and leading stakeholder group within a company enabling growth and competitive
advantage.
This presentation reviews the following areas and the supporting HR technology solutions that are enabling the digitization of
HR along with other HR technology solutions based on our industry expertise and client experiences.
6
• Performance Management
• Contingent Workforce Management
• Global Immigration Visa Case Management
• Human Capital Management
• Employee Data and Workforce Analytics
• Talent Acquisition

7. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Human Capital Management (HCM) Systems
7
Human Capital Management (HCM) systems are at the core of HR digitalization. They are evolving from enabling the automation of core HR
processes to technology platforms dedicated to improving the employee work experience and enabling operational growth strategies while
reducing costs.
STANDARDIZE
MOBILIZE
AUTOMATE
DATA CAPTURE
DATA USE
Standardizing business processes and workflows across a global organization to
enable consistency, compliance and scalability
Improving the growing mobile workforce experience through mobile apps to access
information and take action from anywhere, at any time
Enabling automation and approval workflows for payroll, benefits administration,
workforce planning, time off or absence requests and time entry approval
Capturing a broader and more comprehensive employee data set to enable advanced
and predictive workforce analytics to drive operational strategy
Provisioning employee and organization data across the company through easier cloud
integration to enable newer HR technologies and other business systems
Traditional Capability Digital Enablement
Human Capital
Management

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Employee Data and Workforce Analytics
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VISIBILITY
PLAN
ANALYZE
PREDICT
MEASURE
Gain visibility into global workforce with organizational trends, issues and outliers to
support business operation improvement and workforce planning
Plan for growth through organizational realignment or identification of new
departments with the required management layers and skill sets
Analyze organization against talent objectives by segmenting employees by job
functions, gender, age, ethnic background, tenure, salary, location, etc.
Predict talent gaps resulting from organizational growth, promotions and attrition to
organizational growth, drive talent acquisition and retention strategies
Measure the effectiveness of workforce professional development programs or talent
acquisition and retention programs focused on areas like diversity and inclusion
Traditional Capability Digital Enablement
The growing employee data set is becoming one of the most valuable data assets within an organization. Companies are able to analyze their
workforce, identify current and forecast future gaps, develop talent acquisition, retention and growth strategies with programs focused on
where and how to scale the organization.
Employee Data &
Workforce Analytics

9. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Talent Acquisition
Next generation Talent Acquisition solutions extend far beyond the capabilities delivered with core HCM suites. Organizations are leveraging
these solutions to compete for talent by engaging with candidates to develop and nurture relationships in new ways similar to how
organizations customers.
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ATTRACT
PROMOTE
INCREASE
IMPROVE
MEASURE
OPTIMIZE
Attract and source talent through online, social, mobile platforms and talent
communities to broaden visibility into an organization and career opportunity
Promote company brand, mission, culture, and differentiation through multiple
channels to create awareness, interest and nurtures the candidate experience
Increase productivity and flexibility through the automation of job profile management
and distribution across all channels to drive job applications and candidate pipeline
Improve and personalize candidate experience and communication throughout the
application to hire lifecycle through applicant tracking and relationship management
Measure effectiveness of sourcing strategies to identify most valuable and
productive campaigns, identify inefficiencies and reduce cost to hire
Optimize sourcing channels, messaging, recruiting campaigns, and talent acquisition
initiatives through candidate experience and conversion analytics
Talent Acquisition
Traditional Capability Digital Enablement

10. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Performance Management
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PROMOTE
EMPOWER
MEASURE
AUTOMATE
ANALYZE
Promote a culture of real-time and continuous feedback, coaching and employee
development that becomes part of the daily work life
Empower employees to provide 360 degree collaborative performance feedback and
recognition across peers, teams, employees to managers and managers to employees
Measure employee and manager ability to meet objectives and reach predefined
professional development and organizational goals
Automate performance data collection and aggregation through solutions that are
extensions of or embedded in every day communication and collaboration tools
Analyze individual and team performance against objectives and goals to support
compensation planning and promotion cycles
Traditional Capability Digital Enablement
Performance Management Systems have evolved to help organizations recognize performance and identify development opportunities to
improve employee experience and increase retention. A new breed of systems brings Performance Management into the daily workflows of
Managers and Employees, allowing organizations to adopt a real-time, continuous feedback and performance recognition culture.
Performance
Management

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Contingent Workforce Management Systems
Organizations are challenged with the rising costs of contingent labor which accounts for nearly half their workforce and managing hundreds
of vendor relationships with varying contractual agreements while trying to manage risk. Contingent Workforce Vendor Management Systems
(VMS) have emerged to bring better control, visibility, automation, compliance and cost savings.
DIGITIZE
REGULATE
SECURE
INTEGRATE
VISIBILITY
Centralizing the management of all contingent workers into a single system for
improved management, visibility, and headcount reporting
Reducing annual spend by standardizing on competitively-priced market rates
Automating the Sourcing, Interviewing, Onboarding, Invoicing, and Exit processes
Increasing quality by measuring candidate quality and worker performance
Ensuring compliance and risk mitigation through proper FLSA worker classification
and adherence to corporate, regulatory, and legislative rules and regulations
Digital Enablement
Contingent
Workforce
Management
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Traditional Capability

12. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Global Immigration Case Management Systems
Global Immigration visa programs are becoming more complex due to the shift in global sentiment towards immigration and potential changes
to the H-1B program that may impact an organization’s ability to hire foreign workers. This combined with a 40% increase in applications
since 2008 reaching 400,000 in 2016 has brought a new generation of systems that deliver automation, compliance, security, and self-service.
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DIGITIZE
REGULATE
SECURE
INTEGRATE
VISIBILITY
Automate and digitize the end to end visa application and case management lifecycle
with standardized workflows, electronic document management and electronic filings
Maintain compliance with global government regulations by managing filings, form
submissions and document retention for audits
Secure employee personal information and collection of documentation with sensitive
data through secure system communication and employee self-service
Integrate with core HCM, Applicant Tracking and Finance systems to securely share
visa application and employee data across business systems
Bringing visibility and analysis into immigration programs to enable optimization or
support changes to immigration program strategy
Digital Enablement
Global Immigration
Case Management
Traditional Capability

13. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
HR Technology Solutions
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Kenny & Company helps clients identify the right solutions that meet their needs by performing informal or RFP based market analyses,
evaluations, and vendor selections. Our firm has helped clients evaluate or implement the following HR technology solutions:
Capability Area HR Technology Solutions
Human Capital Management
Employee Data & Workforce Analytics
Talent Acquisition
Performance Management
Contingent Workforce Management
Global Immigration Case Management

14. © 2018 Michael S. Kenny & Company LLC. All Rights Reserved.
Conclusion
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Not Digitizing HR is Not an Option…
§ The HR technology disruption will continue as emerging solutions evolve and new future advancements
in mobile computing, social platforms and artificial intelligence come to market that continue to
transform how organizations attract, develop, retain and manage talent.
How does your HR Technology strategy align to this new wave of disruption?
§ The technology capability and employee productivity gap will continue to widen – it’s up to HR to close
the gap! Are you actively closing the gap today?
§ The war for talent will continue and you can no longer just rely on the your brand.
How will you compete to attract high caliber talent from competitors and other companies?
§ The workforce has changed, and so has their expectations. Millennials seek professional development
and growth opportunities with recognition and the ability to have their voices heard.
How will you create a work environment and employee experience that improves productivity?